Dasgupta pep talk to make VAT a success
Allaying traders’ apprehension over value-added tax (VAT), Bengal finance minister Asim Dasgupta, who is also the chairman of the empowered committee of finance ministers on VAT, today denied allegations that the new tax rate has been imposed on the pressures of IMF or World Bank.
Addressing a seminar on VAT here today, Dasgupta said the traders would not need to maintain accounts through computers. The ledger of accounts the traders maintain would be enough, he added.
The seminar was organised by the commercial tax department of the Orissa government to raise awareness among traders and clarify the misconceptions surrounding VAT.
Dasgupta said VAT is not an inflexible tax system. “Let the traders give their suggestions. We are to change the existing rules and conditions on VAT accordingly,” he said and added that state governments have been given ample power to provide relaxation to the trading community.
He also said that no action would be taken against traders, who fail to comply with the new tax regime, in the next six months. Dasgupta asserted that the uniform tax rate would benefit both the traders and the government.
Inaugurating the seminar, chief minister Naveen Patnaik said some states have made perceptible deviations from the convergence point reached earlier by the empowered committee.
“VAT would be successful in a federal country like India if there is mutual trust and reciprocity of actions. Unless all the states adhere to the same principle and policy relating to VAT, there would be revival of competitive populism among the states,” he said referring to neighbouring states such as Jharkhand and Chhatisgarh, which are yet to implement VAT.
More: telegraphindia.com